Barclays Upgrades LVMH, Kering on Self-Help

Barclays raised LVMH to Overweight with price target €600 (up from €575) and Kering to Equal Weight with target €300 (up from €255).
LVMH and Kering shares rose 1% and 1.3% in Paris, while LVMH is down 26% YTD versus MSCI Europe up 5%, trading at ~20x forward earnings, a 16% discount to its historical average.
Barclays expects luxury sector growth ~3% in 2026, stabilising near 4%, citing Tiffany and Dior turnarounds for LVMH and Gucci restructuring for Kering.
Barclays projects Kering EBIT margin to double to 21.7% by FY29 and EPS CAGR ~55%, noting FY26‑27 estimates may be too high.